Landlords in California now operate under the Tenant Protection Act of 2019, which took effect on January 1, 2020. This law, known as AB 1482, set statewide limits on rent increases and established just-cause requirements for most residential tenants. Annual rent hikes are capped at the lower of 10 percent or five percent plus the local Consumer Price Index. Landlords must show a qualifying just cause to end a tenancy after the tenant has lived in the unit for the required statutory period. The California Legislative Information system maintains the legislative history and statutory details for AB 1482.
These rules aim to give renters more stability and protect them from sudden rent jumps. Tenants cannot legally give up these rights, and any attempt to do so is invalid under state law. If landlords violate these protections, tenants can file a Report of Excessive Rent Increase with the Rent Board, which may lead to penalties.
Exemptions and Local Variations
Some rental units are not covered by the statewide cap. Properties built in the last 15 years are exempt, and this exemption updates each year. Units set aside for low and moderate income households, and two-unit properties where the owner lives in one unit during the tenancy, are also excluded from the rent cap and just cause rules. Certain cities, including San Francisco, have stricter rent control. In Oakland and East Palo Alto, local laws allow only one rent increase per year unless the unit is exempt from rent control.
Legislative Proposals and Industry Response
The California legislature has looked at tightening rent control further. AB 1157, which passed the Assembly Housing and Community Development Committee in 2025 but did not reach the Assembly Judiciary Committee, proposed lowering the maximum annual rent increase to two percent plus inflation, with a five percent cap. The bill also sought to expand just cause and rent cap protections to more housing types, such as single-family homes and condominiums, and to remove the 2030 expiration date for rent control. The California Apartment Association and other opponents say these changes could reduce investment in rental housing and make things harder for small property owners.
The California Research Bureau provides confidential research on housing policy and rent regulation impacts for the Governor’s Office and the Legislature. Contemporary Information Corp gives property owners current information on these changing regulations, helping them understand California’s rental laws and how to adjust rent within legal boundaries.
